MEMO

ITEM
123-111-R0504

In 2001 the Montana Legislature, at the urging of the
University System, enacted an exception to the state conflict of interest
statute that gave University System employees the right to enter into
cooperative arrangements with the University to commercially develop the fruits
of the employees’ research (now codified at 20-25-109 MCA). In 2002 the Regents adopted Policy 407
(entitled University System/Employee Joint Ventures), which created a procedure
for Regents’ approval of these cooperative arrangements (copy attached). The Regents have since that time approved 4
or 5 such arrangements. In January of
this year the Board expressed a desire to formalize or regularize the
submission of information that must accompany a request to approve a joint
employee/university arrangement to develop intellectual property. Following that meeting I circulated a form
that laid out how the information already required by Policy 407 should be
submitted to the Board. That form is
also attached.

There remains some concern about the information requested,
especially on the MSU campus. The main
sticking point is #5 on the form. That
requests that the campus submit a copy of the written agreement for which
approval is sought. However, it also
provides that if public disclosure of any parts of the contract would
compromise legally protected property rights these parts can be deleted (or
redacted as lawyers are wont to say).
Some on campus think that this provision is too weak and that public
disclosure of the contract will generally have a chilling effect on partners
who might otherwise be willing to participate with the University and its
employees in a venture to commercialize the intellectual property in
question. Discussions between this
Office and MSU have failed to come up with mutually acceptable language. Therefore, the matter is being passed on to
the full Board for its discussion and resolution.